Pro-Dex, Inc. (NASDAQ: PDEX) operates as a medical instrument and device company, which designs, develops, and manufactures multi-function surgical drivers and other instruments for orthopedic and maxocranial facial markets. Over the past three months, Pro-Dex has seen average daily volume of 24,580 shares. However, volume of 137,872 shares or dollar volume of $1.65 million, has already exchanged hands on the day.
Shares of Pro-Dex are gaining through afternoon trading on Friday after the company reported fiscal first quarter 2019 earnings results. The medical instruments company reported net sales of $6.9 million, which is an increase of 34% year-over-year. Gross profits came in at $2.7 million, which is growth of 47% year-over-year. Net income came in at $1.3 million or $0.31 per share. Here is the full press release detailing of the fiscal first quarter 2019 earnings results:
Pro-Dex, Inc. Press Release:
IRVINE, CA / ACCESSWIRE / November 8, 2018 / PRO-DEX, INC. (PDEX) today announced financial results for its fiscal 2019 first quarter ended September 30, 2018.
Net sales for the three months ended September 30, 2018 increased $1.8 million, or 34%, to $6.9 million from $5.2 million for the three months ended September 30, 2017. The increase is driven by increased sales to our largest customer.
Gross profit for the three months ended September 30, 2018 increased $867,000, or 47%, to $2.7 million, compared to $1.9 million for the year-ago period, primarily due to continued efficiencies in our manufacturing and assembly operations as we continue to invest in new machinery, as well as our ability to better absorb our fixed operating costs in light of higher sales. As a result, gross margin has improved by 3 percentage points to 39% during the three months ended September 30, 2018, compared to 36% during the corresponding year-ago period.
Operating expenses (which include selling, general and administrative, and research and development expenses) for the quarter ended September 30, 2018 remained relatively flat, increasing $13,000 from the corresponding year-ago period.
Net income for the quarter ended September 30, 2018 was $1.3 million, or $0.31 per share, compared to $628,000, or $0.15 per share, for the quarter ended September 30, 2017.
Richard L. (”Rick”) Van Kirk, the Company’s President and Chief Executive Officer, commented, ”We are pleased with our first quarter results which include record breaking sales and pre-tax income. We continue to focus on meeting the needs of our existing medical device customers and we are well on the path to release a private-labeled thoracic driver to one of our significant customers later this fiscal year. During the first quarter, we changed our banking relationship for all of our treasury needs and borrowed $5 million on a seven-year term loan at an annual interest rate of 5.53%, as well as establishing a $2 million revolving loan, which we have not drawn against. The capital infusion provided by the debt was strategically executed at this juncture to facilitate better terms and to provide us with flexibility to quickly respond to business opportunities that may arise.”
About Pro-Dex, Inc.:
Pro-Dex, Inc. specializes in the design, development, and manufacture of autoclavable, battery-powered and electric, multi-function surgical drivers and shavers used primarily in the orthopedic and maxocranial facial markets. We have patented adoptive torque-limiting software and proprietary sealing solutions which appeal to our customers, primarily medical device distributors. Pro-Dex also sells compact pneumatic air motors for a variety of industrial applications. Pro-Dex’s products are found in hospitals and medical engineering labs around the world. For more information, visit the Company’s website at www.pro-dex.com.
Statements herein concerning the Company’s plans, growth and strategies may include ‘forward-looking statements’ within the context of the federal securities laws. Statements regarding the Company’s future events, developments and future performance, as well as management’s expectations, beliefs, plans, estimates or projections relating to the future, are forward-looking statements within the meaning of these laws. The Company’s actual results may differ materially from those suggested as a result of various factors. Interested parties should refer to the disclosure concerning the operational and business concerns of the Company set forth in the Company’s filings with the Securities and Exchange Commission.